“Today, Senate
Democrats stand united in our commitment to bring transparency and
accountability to derivatives,” Dodd
said.“We have taken the strongest provisions from our two
bills. Under this agreement we will see derivatives moved through clearing
houses, traded on exchanges, and facing tough capital and margin requirements
that will help stop Wall Street from gambling with our financial security.”

“I
am proud to announce that the major provisions of The Wall Street Transparency
and Accountability Act approved by the Senate Agriculture Committee are
included in the final Wall Street reform package. This is landmark reform that
will bring the $600 trillion derivatives market out of the dark and into the
light of day, ending the days of backroom deals. Chairman Dodd and I have
produced the strongest reforms to date and we must move forward to bring the
necessary regulations to our nation’s financial system,” Lincoln said.

“Brings 100 Percent Transparency to Market with Real-Time Price
Reporting: Wall Street will no longer be able to make excessive profits by
operating in the dark. Exposing these markets to the light of day will put this
money where it belongs – on Main
Street. The public will see what is being traded,
who is doing the trading and, most importantly, regulators can go after fraud,
manipulation and excessive speculation.

“Lowers Systemic Risk by Requiring Mandatory Trading and Clearing:Trading and clearing of swaps lower risks and make the entire financial system
safer. Transactions, determined by the regulator, will be required to clear
through a clearinghouse. In addition, these transactions must be traded on a
regulated exchange, which will provide further market transparency.

“Prevents Future Bailouts and Addresses “Too Big to Fail”: Banks need to be kept in the business of
banking. The taxpayer funds used to bail out AIG and other Wall Street firms will
never be used for this purpose again. The Federal Reserve and FDIC will be
prohibited from providing any federal funds to bail out Wall Street firms who
engage in risky derivative deals.

“Closes Loopholes: Loopholes have allowed far too many to avoid the
law of the land or set up shell companies to claim exemptions. This bill gives
regulators the authority to close any loophole they find, protecting the
markets, taxpayers and the economy.

“Protects Jobs on Main
Street: The interests of Main Street will be protected. Commercial
businesses and manufacturers who use these markets and customized contracts to
manage risk will still be permitted to do so. This will protect American jobs
and keep consumer costs low.

“Protects
Municipalities and Pensions: Swaps dealers will have a “fiduciary duty,”
just like investment advisers, that will require the interests of
municipalities and pension retirement funds be put first; ensuring Wall Street
doesn’t take advantage of Main
Street and taxpayers.

“Regulates
Foreign Exchange Transactions:Foreign exchange swaps will be regulated
like all other Wall Street contracts. At $60 trillion, this is the second
largest component of the swaps market and must be regulated.

“Increases
Enforcement Authority to Punish Bad Behavior:
Regulators will be given broad enforcement authority to punish bad
actors that knowingly help clients defraud third parties or the public such as
when Wall Street helped Greece
use swaps to hide the true state of the country’s finances.”

This week’s guest on Open Mic is Rod Hebrink, President and CEO of Compeer Financial. The lack of certainty from a new farm bill and weak commodity prices due to lost export markets and robust supplies have left farmers and lenders with a grim outlook for 2019. In this interview, Hebrink discusses the challenge of the unknown and the need for legislators and the White House to take action on farm policy, trade and regulations to help rural America prepare for the year ahead.

The world of agriculture extends beyond what’s growing in your field or living in your barn, and here at Agri-Pulse, we understand that. We make it our duty to inform you of the most up-to-date agricultural and rural policy decisions being made in Washington D.C. and examine how they will affect you – the farmer, the lobbyist, the government employee, the educator, the consultant and the concerned citizen.